PENGARUH STRUKTUR GOVERNANCE TERHADAP FEE AUDIT EKSTERNAL

Abstract

The purpose of this study is to examine the influence of the characteristics
of structur governance (board commissioner and audit committee) on audit fees.
The existence of the board commissioner and the audit committee as a mechanism
of checks and balances is expected to reduce control risk, so low external audit
fees can be achieved.
This study is replication of Yatim’s et al. research in 2006 and uses
secondary data from annual reports of manufacturing companies which listed on
Bursa Efek Indonesia in 2006-2008. This study uses purposive sampling method
and uses multiple linear regression as the analysis instrument. Before being
conducted the regression test, it is examined by using the classical assumption
tests.
The results of this study indicate that the size of the board commissioner,
the meeting intensity of the board commissioner, the size of the audit committee,
and the meeting intensity of the audit committee did not influence the external
audit fees. The independency of the board commissioner and the independency of
the audit committee have significant positive relationship on the external audit
fees. It means that the independency of the board commissioner and the
independency of the audit committee will demand a high quality audit from
external auditors, resulting in higher audit fees.